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Online ticketing startup AbhiBus.com set to raise $10mn from PE players

Online ticketing platform AbhiBus.com is reportedly planning to raise $10 million from private equity (PE) players. The Hyderabad-based startup has appointed Kotak Investment Banking as an advisor.

Online ticketing platform AbhiBus.com is reportedly planning to raise $10 million from private equity (PE) players. The Hyderabad-based startup has appointed Kotak Investment Banking as an advisor.

As per reports by Business Standard, Sudhakar Reddy Chirra, Founder and CEO, said this would be part of the company’s plan to raise a total of $40 million over the next two years from PE funds and strategic investors.

“The $10 million will be the first tranche and we hope to close the deal in the next three or four months,” Chirra told Business Standard

Founded in 2007 by Sudhakar Reddy Chirra, with the goal of bringing the inventories of bus operators online, Abhibus.com provides end-to-end software and other value added solutions for the bus transport industry. 

It has offices in Bangalore, Chennai, Hyderabad and Mumbai. With ticket inventory from over 1500 operators and 15000 routes, the company also provides technology solutions to more than 100 large private bus operators in India, 4 state transport corporations and 2 international operators.

The proposed fund raising plan is to support the company’s geographical expansion and to build a brand. The company plans to enter Gujarat, Maharashtra, Delhi, and Uttar Pradesh markets and this would support its target of becoming a Rs. 500 crore company by FY16. AbhiBus has set a target to close the financial year with a revenue of Rs 250 crore in FY15.

According to Chirra, bus ticketing is a Rs 25,000 crore industry with the southern India region contributing as much as 60-70%. Of the Rs 25,000 crore, e-ticketing contributes only 15% at the moment. This is expected to increase to 40% in the next two years.

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